The announcement comes as an increasing number of companies move into prediction markets, an industry that is estimated to grow to $1 trillion by 2030
What to know:
- High Roller Technologies shares surged as much as 130% after the company said it planned to introduce a U.S. event-based prediction market in partnership with Crypto.com.
- The platform will initially offer Crypto.com Derivatives North America event contracts on finance, sports and entertainment, though the companies did not disclose a launch date.
- High Roller and industry analysts say prediction markets, already generating more than $3 billion in annualized revenue, could exceed $1 trillion in trading volume and $10 billion in revenue by 2030.
High Roller Technologies Inc. (ROLR) stock more than doubled after the online casino operator said it planned to introduce an event-based prediction market in the U.S. in conjunction with Crypto.com.
The Las Vegas-based company said Tuesday it will initially offer its customers Crypto.com Derivatives North America (CDNA) event contracts in the U.S. across finance, sports and entertainment. CDNA is a CFTC-registered exchange and clearinghouse and affiliate of Crypto.com. It didn’t say when the planned market would start operating.
The company’s share rose as much as 130% and were recently 65% higher at $8.32. Crypto.com’s CRO token gained 3% after the announcement to 7 cents.
Prediction markets have quickly gone from being niche betting platforms to a growing sector of sophisticated trading platforms that aggregate real-world event probabilities. Leading participants include Kalshi, a CFTC-regulated U.S. exchange for event contracts, and Polymarket, one of the largest decentralized markets covering politics, sports and economics. The market is expected to mature into one with trading volume in excess of $1 trillion by 2030, according to High Roller.
Prediction markets are running at an annualized revenue rate above $3 billion, up from about $2 billion in December, and could reach $10 billion by 2030, according to a recent report by U.S. bank Citizens.